February 2012
What are the main challenges that Montenegrin companies will face during the forthcoming period? Despite the results of regulatory reform and the enhancement of the business environment, many business barriers are still present; particularly in terms of slow and time-consuming procedures, especially at a local level. In addition to the challenges that the real sector has already had to face as a result of a fall in the level of industrial production, there is also the problem of a high degree of illiquidity.
Are you satisfied with the benefits gained by the Montenegrin economy to date as a result of the implementation of CEFTA? Since the agreement confirming entry into CEFTA came into force, an increase in the volume of regional trade has been recorded. The total trade exchange between Montenegro and other CEFTA countries in 2011 amounted to 43 percent. In order to protect its their own production levels, signatories occasionally resort to non-tariff barriers and hidden measures of protection. These are the greatest obstacles to realizing the full potential of the CEFTA agreement.
As a result of institutional and legislative reforms carried out by the banking sector, an environment which encourages an increase in lending has been created. However, due to an increased level of A significant step forward in improving the application for this illiquidity in the real sector, this is still well below the expected agreement was made part way through last year. At this time, level. During the current year it is also realistic to expect a Montenegro had agreed to implement a greater level of freedom slowdown in lending, difficulties in returning loans that have been with Croatia. Subsequently, a higher level of trade freedom has also taken out, higher levels of interest rates, a reduction in foreign started to be implemented with Albania. direct investments, a slowdown in the field of construction (due to a fall in demand and also in property prices), the construction of The former CEFTA agreement, which dates from the time of the tourist facilities, a slower level of growth in the number of tourists Cracow Declaration in 1992, was a successful way of adopting and lower investments in capital infrastructure projects. international business rules and resulted in EU membership for In order to trigger the economic cycle and to put immobilized funds all of its signatories. The present agreement, CEFTA 2006, has into circulation, the option of creating private-public partnerships been enriched in certain new areas, and also provides a framework to implement large investment projects in energy and tourism could for “training” in the area of implementing international standards, be very positive. A significant contribution to stimulating activity concentrating on the growth of regional trade. Breaches of the in the economy would be to give willing investors relief from taxes, agreement’s provisions, which have occasionally happened from utility fees and other similar obligations in order to develop sectors time to time, have called into question its validity. However, in which the state can see a long-term interest. lessons have been learned and ultimately the signatory parties have demonstrated their commitment and dedication to the European One of the projects that promotes Montenegrin companies ‘road’.
is called “Good from Montenegro” . Could you tell us more about this project and whether are you satisfied with the results that have been achieved?
A growing foreign trade deficit has been characteristic in Montenegro for years. We produce, among other things, food which wins numerous awards at trade fairs. Our production is certified according to international standards, but our products don’t successfully find their way to local or to foreign customers. We have noted that this is an area that requires special attention and have therefore started to work on this with a precisely defined plan. We have consequently registered the trademark "Good from Montenegro". Activities are aimed at consumers through the promotion of high quality products, services and manufacturers to effectively give products a high profile. Among other things, the Chamber of Economy of Montenegro has implemented this through training, market research, business networking, numerous business forums and participation at trade fairs. Today, 13 manufacturers who offer a total of 73 products are allowed to use the trademark. Analyses have shown that there is now a better and greater recognition of high quality local products by local consumers. The project "Good from Montenegro" has, over the course of three years, achieved a good reputation, trust and an unusually high level of support from Montenegrin citizens. The popularization and promotion of local quality products were the main objectives of the project in the last phase. The Chamber of Economy was, in this case, able to help in real terms and we are very satisfied with the results. The rest is up to the companies themselves. They should now seize the opportunity offered to them through a very positive perception of their collective trademark; a guaranteed level of quality by which some of their products are marked. When producers have completed this stage successfully in the local market, they can then turn to the foreign export market.
One of the activities carried out by the Chamber of Commerce is the staging of meetings for the Committee of Women Entrepreneurs. How do you provide support for women entrepreneurs? The development and promotion of women as entrepreneurs is supported by regular activities that are carried out by the Chamber of Economy of Montenegro. It provides support to women entrepreneurs through activities aimed at analyzing conditions and tries to find ways of improving the business environment for women entrepreneurs. It also: provides information and organizes consultations with women entrepreneurs; organizes training; facilitates workshops and round table discussions on current topics that are important for the promotion of women as entrepreneurs; encourages women entrepreneurs to network through the development of local and regional networks. The Chamber of Economy of Montenegro, together with the Center for Entrepreneurship and Economic Development, is currently implementing a project to support women in business (Womenled Business Support Program). Within this project, funded by the European Union, the first national network of mentors for women entrepreneurs in Montenegro was established, as a part of the European network which is made up of 17 countries. It aims to support and help women entrepreneurs to develop their own businesses. Even before this project was initiated, through the Association of Balkan Chambers of Commerce and the Forum of Adriatic-Ionian Chambers, the Montenegrin Chamber of Economy conducted activities to encourage women entrepreneurs. They did this by encouraging them to participate in activities associated with them concerning this same issue.
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